30% more employees in the construction industry and the services sector to come under EPFO
EPFO (Employees’ Provident Fund Organisation) has asked its field offices to focus on the construction industry and the services sector. This should be done in order to increase the coverage of its social security net by 30 % following the government’s decision to enhance wage ceiling. Unfortunately even though the construction industry employs the maximum number of people in the country, most of them do not come under the EPFO ambit.
Most of the construction labourers earn their daily wages and do not have any kind of social security. The government has increased the monthly wage ceiling for becoming a member of the Employees’ Provident Fund Organisation (EPFO) at the time of joining. From September 1, it is made Rs. 15,000 from the existing Rs. 6,500 so that more people can benefit from the EPF scheme.
It is expected that following the increase, more workers are likely to come under the social security schemes run by the retirement fund body EPFO. EPFO clarified this in an office order today that a target of 30 % enhancement in the coverage base is fixed for all the regional and sub-regional offices. They also want to be very strict in the implementation of this order and stated that all the in-charges of the regional offices shall ensure that the target fixed is achieved. EPFO will not tolerate any laxity on this count, and the entire procedure will be viewed seriously.
Source- The Hindu Business Line
